Earlier this month, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed administrative monetary penalties on two Canadian dealers of precious metals and stone: Saskatchewan’s Victoria Jewellers Ltd., and Toronto’s Diamond Exchange Toronto Inc.
Both jewellers were found to have violated the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations (PCMLTFR). This was due to their failure to develop and apply written compliance policies and procedures; assess and document the risks related to money laundering and terrorist financing; and develop and maintain a written, ongoing compliance training program.
Victoria Jewellers was imposed with a penalty of $13,500, while Diamond Exchange Toronto received a fine of $12,750.
“Canada’s anti-money laundering and anti-terrorist financing regime is dependent on the dedicated efforts of Canada’s businesses on the front lines of the legitimate economy,” says Gerald Cossette, director of the Financial Transactions and Reports Analysis Centre of Canada. “Our compliance efforts are meant to ensure they fulfill their legal obligations and send us the information that we need to produce actionable financial intelligence for our law enforcement and national security partners.”
In order to avoid these issues, all jewellers should have an Anti-Money Laundering and Terrorist Financing Compliance Regime completed for their businesses and should be undergoing their required reviews. For further assistance, contact Jewellers Vigilance Canada here.